Chiu YiHeng (10103023), Misha Krug (10103007), Yuan Li (10102981), Anne Neidhart (11105135), Bidzina Khutsurauli (11105321), Angelica Sofrony (11105259) Group No. 1 Ice-Fili Strategic Marketing
May 30, 2015
Chiu YiHeng (10103023), Misha Krug (10103007), Yuan Li (10102981), Anne Neidhart (11105135), Bidzina Khutsurauli (11105321), Angelica
Sofrony (11105259)Group No. 1
Ice-FiliStrategic Marketing
Table of Content
Internal and External Environment Business Model Evaluation Competitive Advantage and Position Core Problem Strategy Options Operational Marketing Plan Contingency Plan
Internal and External Environment
IL
Customer
OLMS
New Entrants
MS
Substitutes
OL
Supplier Industry Rivalry
IL OR OL MS SFI
HRMTDPR
PoliticalEconomical
SocialTechnological
Strengths
Weaknesses
Opportunity
Threat
Business Model Evaluation
Superior taste:
Traditional Russian Ice cream with natural high quality ingredientswith no preservatives
KiosksMini-MarketsPizza Hut TV Advertising
Imported raw Materials: Milk, Milk powder, Sugar, Butter and favor additives
Producing Ice Cream
Develop new Ice cream tastes
Focused Customer Group: not specific
Location:Metropolitan areasLess Wealthy regions
Packaging, Changing recipes and Processing WasteR&DHigh Fixed CostMarketing and Advertising Cost
• Advice (design company)• Suppliers of Ice-cream equipment from Denmark and The USA• Association of Russian Ice Cream Producers•Distribution Companies: Alter-West • Small distribution companies: Service-Fili, Eskimo-Fili, Inka
Interest in traditional Russian all-natural milk-based ice cream.
Make people smile and happy
Sales on ice cream productsLimited mayonnaise productionFat-containing productsGlaze for ice cream
Front sideBack side Of the company
Value Chain Competitive Comparison
Value Chain characteristic
Nestlé Baskin-Robbins
Regional players
Ice-Fili
Inbound logistics
Strong Strong Weak Equal
Operations Strong Strong Normal Equal
Outbound logistics
Strong Strong Weak Inferior
Sales and Marketing
Very Strong Weak Strong Equal/Inferior
Service Normal Normal Normal Equal
Firm infrastructure
Strong Normal Normal Equal
Human Resource Management
Strong Very Strong Weak Inferior
Technology Development
Strong Strong Strong Inferior
Procurement Strong Normal Normal Inferior
SupportActivities
PrimaryActivities
Competitive Positioning
Ice-Fili-price of an ice-cream 6 rubles
Nestle- price of an ice-cream 10 rubles (or more)
Regional producers- price of an ice-cream 3 to 4 rubles * 1ruble=3.4cent
Correct market
Russia-Moscow
Core problem
Disease indicators:Sales decrease, market share decrease,
increased number of competitors, market segment shift.
Company’s core problem:
Wrong organization
Ice-Fili-Stuck in the middle
Correct product
Ice-cream
In the late 1990, at least five other companies started producing Lakomka.
Strategy options
Strategy Ways to achieve the strategy
Differentiation strategy Low price through differentiation product, dominate the whole Russian market
Market penetration Market penetration by developing new occasions of consumptions and distributions
Product development Focus on the differentiating the products they already have and toward a more focused in-home consumption
Co-operation Investing in equipment and ingredients at home rather than abroad. Cooperate with local ice cream equipment companies in order to decrease operation cost
Cost leadership strategy The biggest Russian ice-cream company with the cheapest in the world to buy
Russia’s top ice-cream producer- opportunity for economies of scale
Ice-cream-considered as an inexpensive snack, available for everyone
“Lakomka”-company’s flagship brand could not be register as its own trademark
80% of company’s ice-cream was distributed through
kiosks and mini-markets.
Cost leadership strategy
Operational Marketing Plan
ICE-FILITwo mainstream
Channels
Impulse (95%)
In-Home (2%)
Focus on Summer Season
Starting 1 month prior and ending one month
ahead. Create excitement with
traditional brands This will generate loyalty and increase consumption
Focus on other seasons ≠ summer.
Approximately 4 month per year.
Developed new occasion of
consumption increasing Ice-Fili presence in the
Russian households.
Operational Marketing Plan - Impulse
Proposition
Promotion
Place Pack PriceProduc
t
Two points of contact with the
consumer.1. Media: BTL &
ATL2. POS
The Impulse channel
packaging must be clear and engaging through the
use of:• Branding• Color coding•Shape coding
Parity price with local
competitors and local
manufactures.
Products that applied
to local flavors, like the Plombir.
Develop core
brands in terms of
variants and ≠
presentations (popsicles, cones and
cups)
360° Campai
gn
TV & Radi
o
PR
OOHDigital
In-store
Refreshing Flavors for the
Summer
KiosksMinimartsGastrono
ms
Main highlights On impulse channel Ice-Fili is going to
focus on 3 Ps Promotion, Price and Products.
In this channel Ice-Fili is looking to increase loyalty from the consumer to the brand and increase consumption frequency.
Main features of the campaign are OOH, In store activations and digital.
Operational Marketing Plan - In Home
Proposition
Promotion
Place Pack PriceProduc
t
Two points of contact with the
consumer.1. Media: BTL &
ATL2. POS
Premium prices.
Approximately 15-20% -above Ice-Fili regular portfolio.
Products that applied
to local flavors for in
home consumption
. • Multipacks• Liters• Desserts
360° Campai
gn
TV
PR
Digital
In-store
Specially created for the lovers of great taste in
family.
Supermarkets (2%)
Minimarts (29%)
Packs that drives appeal
and is eye catching,
resulting in a better
visibility in POS.
Main highlights In- home channel will be developed
through 4 Ps Proposition, Promotion, Place and Pack.
With this campaign we aim increase market penetration by developing new occasions of consumption.
In-Home campaign mix will mainly focus on TV (conventional and non-conventional), PR and In-store.
To protect the critical strategies of Ice-fili`s marketing plan and to minimize risk the following issues will be addressed: 1. Set Up Monitoring Operations
Watching marketplace, actions of competitors and financial results/KPI`s:
- Sales, Profit and Gross Margin - Market Share, Market Standing, Market Penetration - Brand Awareness, Customer Satisfaction, Customer Awareness, Customer Retention
Analyzing the implications of any changes Specifying the criteria (KPI`s) to determine if the strategies have
succeeded or failed
2. Define Alternative Plans Of Action Proactive responses to “What if”- scenarios in order to
quickly adapt to changing circumstances
Contingency PlanPLA
NB
Contingency Plan
What if - Scenario Developed Contingency Plan
What will Ice-Fili`s response be concerning its strategy of impulse if Ice-Fili`s market share is not increasing by the third month?
Making a trade off in budgets to invest more in trade marketing to activate the sales ensure that the product is widely distributed and available for the end consumer
What will Ice-Fili`s response be if their sales objectives will only be reached by 50%?
Enhancing current marketing techniques by focusing on what Ice-Fili does best and targeted communication differentiate itself by advertising its high quality and great taste as well as the fact that it is a Russian company
What will Ice-Fili`s response be if their main competitors decrease its price by 50% of Ice-Fili`s price?
Temporary price cuts are not a long-term strategic move ensure and communicate that Ice-Fili has a unique selling proposition. If Ice-Fili must discount they have to make sure the cuts are communicated as special offers.
What will Ice-Fili`s response be if changes in customer preferences occur regarding to taste, flavor and presentation (popsicles, cones and cups)?
Being aware of these changes and offering a special solution for the particular needs of the customers development of new or improved products regarding to taste, flavor and presentation preferences.
THANK YOU!!